Annual Report 2008

Funding under the Party Leaders Allowance legislation

The Party Leaders Allowance legislation provides for the payment of an annual allowance to the parliamentary leader of a qualified political party in relation to expenses arising from the parliamentary activities, including research, of the party. The legislation prescribes 11 different categories of expenditure which are regarded as expenses arising from the parliamentary activities, including research, of the party. The Allowance is not subject to income tax. The Allowance must not be used for, or to recoup, election or poll expenses.

A qualified political party under the legislation is defined as a party which is registered in the Register of Political Parties and which has had at least one member of the party elected to Dáil Éireann or elected or nominated to Seanad Éireann. The same six political parties which are qualified to receive Exchequer funding under the Electoral Acts are also qualified for payment of the Allowance. The Allowance payable to a qualified political party is based on the number of members of the party who are members of Dáil Éireann or Seanad Éireann. If a qualified political party forms part of the Government, the combined allowances in respect of its members of the Dáil only, are reduced by one third. Accordingly, the Allowance payable to Fianna Fáil, the Green Party and the Progressive Democrats is reduced by one third.

The allowances are increased in line with civil service general pay increases. During 2008, an increase of 2.5% under Towards 2016 was applied to the fund with effect from 1 March 2008. A further increase of 2.5% under Towards 2016 was applied with effect from 1 September 2008.

The Allowance can also be increased by an order of the Government. Such an increase would be in line with increases awarded under Reports of the Review Body on Higher Remuneration in the Public Sector. During 2008 no such increases were made to the Allowance.

As at 31 December 2008, the allowances for members of Dáil Éireann were as follows:

As at 31 December 2008, the allowances for members of Seanad Éireann were as follows:

For 2008, the total amount paid to the parliamentary leaders of qualified political parties was €8,132,241. The total amount paid to Non Party TDs and Senators was €361,936.

Each parliamentary party leader is required to prepare an annual statement of expenditure of the Allowance. The statement must be audited by a public auditor and a copy of the auditor's report must be furnished to the Standards Commission with the statement. The statement must be furnished to the Standards Commission within 120 days of the end of the financial year in which the Allowance has been paid. This date is usually 30 April. (The Standards Commission requests, however, that the statement be furnished by 31 March each year.) If the statement of expenditure and auditor's report are not received by the Standards Commission within the 120 day period, payment of the Allowance is suspended until such time as the statement and auditor's report have been received. The statements furnished for 2008 provide details of the funding received for that year and the amount, if any, carried forward from 2007. The statements give details, under the 11 categories of expenditure (prescribed in the legislation), of the matters on which the funding was spent during 2008.

During 2008, An Taoiseach, Brian Cowen TD replaced Mr Bertie Ahern TD as parliamentary leader of Fianna Fáil. In accordance with the legislation, it was agreed that a single statement of expenditure in respect of the Allowance paid to the party during 2008, would be furnished by An Taoiseach.

The Standards Commission must furnish a report annually to the Minister for Finance indicating whether the statements and auditors' reports have been submitted by the statutory deadline, whether any unauthorised expenditure was disclosed and whether the statement is adequate or whether the statement is inappropriate. A report concerning expenditure of the Allowance in 2008 was furnished to the Minister for Finance on 22 June 2009 and laid before the Houses of the Oireachtas. The Standards Commission's report contains details of the funding received by the parliamentary leaders of qualified political parties and how it was spent. The report is available on the website of the Standards Commission. Copies of the statements and auditors' reports are available for public inspection and copying at the offices of the Standards Commission.

In its annual report for 2007, the Standards Commission highlighted a difficulty with regard to giving advice to political parties in relation to the use of the Allowance. Whereas advice given by the Standards Commission under the Ethics Acts and the Electoral Acts is legally binding, advice given in relation to the Party Leaders Allowance has no legal basis. In its report to the Minister for Finance concerning expenditure of the Allowance by qualified political parties in 2007, the Standards Commission made a recommendation that either the Standards Commission or the Minister for Finance should be able to publish guidelines or give advice on the appropriate use of the Allowance and for such guidelines and advice to be legally binding on the persons to whom they apply. The Standards Commission recommended that any such guidelines would be prepared in consultation with the parliamentary leaders of qualified political parties. In considering such a provision, the Standards Commission recommended that the Minister might have regard to the provisions of section 25 of the Ethics in Public Office Act 1995 and section 4(6) of the Electoral Act 1997.

During 2008, the Standards Commission continued to receive requests from political parties for advice as to whether use of the Allowance for a particular purpose was appropriate or not. The Standards Commission gave its advice having regard to the provisions of section 10(1) and 10(14) of the 1938 Act, as amended, or if it considered such use to be prohibited under section 10(5) of the 1938 Act, as amended. The Standards Commission forwarded to the Minister for Finance, for information, an anonymised copy of such requests for advice and the advice given.

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